Mr Hammond said today: "Our economy has grown continuously for four and a half years, delivering record levels of employment. We can be proud of that - but we are not complacent.

"We need to focus on restoring productivity growth to deliver higher wages and living standards for people across the country.

"That is why we are committed to investing in infrastructure, technology and skills to deliver the best possible base for strong future growth."

Shadow Chancellor John McDonnell responded: "Today's GDP figures reveal weak growth under a weak government, and expose the last seven years of Tory economic failure.

"Growth for the first half of 2017 is below expectations, and it follows continued data showing working families are being squeezed with wages not keeping up with prices.

Darren Morgan of the ONS added: "The economy has experienced a notable slowdown in the first half of this year.

"While services such as retail and film production and distribution showed some improvement in the second quarter, a weaker performance from construction and manufacturing pulled down overall growth."

3

The construction sector has shrunk in the past three monthsCredit: Alamy

Thriving businesses include hotels, restaurants and cinemas as consumers showed no sign of scaling back their leisure activities.

Economists have predicted that Britain's economy will grow faster in months to come following figures which show retailers are continuing to strengthen.

Ben Brettell of Hargreaves Lansdown said: "Last week saw news that retail sales rose ahead of expectations, indicating the consumer may still have some petrol in the tank - though the Bank of England has expressed caution over rising levels of personal debt.

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